US private sector employment added 122k jobs in July, below expectations, and marks the fourth consecutive month of slowing hiring.

In July, US private sector employment expanded by 122,000 jobs, according to the ADP National Employment Report, falling below expectations of 150,000 and marking the fourth consecutive month of slowing hiring. This slowdown in job growth may impact the Federal Reserve Board's decision on interest rate cuts, as wage growth is abating, which aligns with the Federal Reserve's efforts to slow inflation. The labor market's decreased wage growth is also reflected in a 4.8% increase in annual pay from the previous year, down 0.1 percentage points from June. The report indicates that job growth was heavily concentrated in trade, transportation, and utilities, as well as construction, while professional and business services, information, manufacturing, and companies with less than 50 employees experienced losses. The ADP report, released two days before the Bureau of Labor Statistics' nonfarm payrolls count, suggests a decrease in job growth in July compared to the previous month.

July 31, 2024
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